The next 2 years followed by constant growth of 45 percent


A stock just paid a dividend of D0 = $2.50. It is expecting supernormal growth at 30 percent per year for the next 2 years followed by constant growth of 4.5 percent. The required rate of return is rs = 15.5% What is the current stock price?

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Financial Accounting: The next 2 years followed by constant growth of 45 percent
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